Competition for real estate in Europe is set to become fiercer

Competition for real estate in Europe is set to become fiercer over the rest of 2020 due to European investors’ need to allocate capital to assets and funds before the end of the year.

Tristam Larder, the joint head of regional investment advisory, EMEA, at Savills, stated that with interest rates remaining at record low levels and demand for high-quality assets outstripping supply, strong competition for European real estate should continue throughout the year.

Larder cited recent figures from Real Capital Analytics (RCA), which show that domestic and European cross-border investment into European property is on the rise — at the expense of international investors. In first half 2020, 79 percent of investment was carried out by the former group of investors, compared to 76 percent in 2019.

In a note, Larder stated: “One reason is of course the travel restrictions that have been in place, but with many U.S. and Asian investors having offices or partners in